What is a disadvantage of the "bottoms-up" approach to budgeting?
A)Lower level management is not apt to know as much about their specific area as upper management who has a better view of the overall picture.
B)When lower management is part of the budgeting process they are less likely to "buy into it".
C)It is time consuming and therefore more costly.
D)It is more apt to be widely seen as unrealistic than is the case with a "top-down" approach.

Question

Quizplus · Accepted Answer

The "bottoms-up" approach involves gathering budget requests from each department or division and then consolidating them into an overall budget plan. This process can be time consuming and require a lot of coordination, which can increase costs. A top-down approach, on the other hand, involves senior management setting the budget targets and then delegating responsibility for achieving those targets to lower level managers. This can be more efficient and cost effective. While options A, B, and D may also be potential disadvantages of the "bottoms-up" approach, they are not as directly related to the process being time consuming and costly.

What Is a Disadvantage of the "Bottoms-Up" Approach to Budgeting